Report 41 – Released on October 10, 2019

Oceania butter prices are lower. Some manufacturers are ahead of demand. Production is seasonally higher as milk production is near the peak. Domestic butter demand in Australia is fair to good. Export interest in early October is not quite what manufacturers had expected. This leaves buyers in a better position when pricing is discussed. Pricing in coming months is expected to be generally steady. Contracting is proceeding with that expectation.

Oceania, 82% Butterfat, Free on Board - Port Butter
     Price Range - $/MT:                          4,050 - 4,175


     Information for the period September 30 -  October 11, 2019, issued biweekly

Secondary Sourced Information:

Butter exports from New Zealand January – August 2019, 305,000 MT, were down 4 percent from January – August 2018, according to CLAL data made available to USDA.

The table below shows the top export destinations and country percent change comparing January – August 2019 with January – August 2018.

NEW ZEALAND BUTTER EXPORTS
     JANUARY - AUGUST 2019

                           % CHANGE
     DESTINATION           2019/2018    MT

     China                 -45          41,232
     Australia              -4          21,646
     Philippines            +8          20,379

Butter exports from Australia July 2019 ą August 2019, 1,560 MT, were down 18.6 percent from the same two months last year, according to Dairy Australia. At GDT event 245 on October 1, the butter all contracts price, $4,125, decreased 0.2 percent. The November contract, $4,155, decreased 0.6 percent.

Published by:
     Dairy Market News - Madison, WI
     Eric K. Graf, 608.422.8590
     Email: Eric.Graf@usda.gov

     Additional Dairy Market News Information:
     Dairy Market News (DMN) by Phone: (608)422-8602
     DMN Website: https://www.ams.usda.gov/market-news/dairy
     DMN MARS (My Market News): https://mymarketnews.ams.usda.gov